Showing posts with label accor. Show all posts
Showing posts with label accor. Show all posts

Sunday, October 9, 2016

Brisbane Rental Yields

The resale market for apartments in Brisbane at present is slow.  There are bargains if you are buying, and it is taking a long time to sell if you are a seller, and often the seller is disappointed with the sales price. 

At present, for apartments in Brisbane that are being sold resale (that is, not by the developer off the plan), the sales prices are decreasing.  Rents are also decreasing, as there is an oversupply.  This is a generalisation, and does not apply to all apartment types or all areas.

I have recently studied the Indooroopilly area.  The gross rental yields are good.  For reasonable quality 2 bedroom apartments, prices have dropped about 10 to 15%.  So apartment that were selling for $485K to $530K last year are now selling in the range of $425K to $500K, with most sales being about $450K to $465K.  Some vendors are selling for more than $100,000 less than what they paid.  The rents for these apartments have dropped from a range of $520 to $560 a week to $480 to $510 a week.  New developments with smaller but modern apartments are doing promotions such as 4 weeks free rent.  On an apartment that I own in Indooroopilly, I am getting a gross yield of 5.7% , where the lease was signed last week.  

Small city apartments are struggling, esp those that are rented in short term rental pools.  I have seen one apartment building in an Accor rental pool where net returns (after rates and body corporates etc) on large one bedroom furnished apartments have dropped from $13,000 a year to less than $5,000 a year. 

Tuesday, December 20, 2011

Mirvac Sells Hotel Division to Accor

Mirvac announced today that it is selling its hotel division to Accor.  In Brisbane, Mirvac owns the management rights for Quay West in Alice Street and Sebel Suites in Charlotte Street.  Mirvac also owns the management rights for Sebel Maroochydore and Sebel Noosa, Cairns Harbour Lights, the Sea Temples in Far North Queensland.  Mirvac is managing the Soul complex on the Gold Coast under the Sea Temple brand.

This sale received international attention, probably because Accor is a French company.

Many investors have purchased strata titled apartments in Mirvac managed buildings.  For the most part, the income is pooled, and investors receive income based on lot entitlements.  It will be interesting to see if Accor will be able to manage such complex arrangements, where each hotel has, in effect, many different owners.

A message to Mirvac staff from management said the following:


"The strategic review has today culminated in the Board of Mirvac Group approving an important transaction involving the sale of Mirvac Hotels & Resorts to Accor Asia Pacific (“Accor”) and the sale of Mirvac’s 49% interest in the Mirvac Wholesale Hotel Fund  (owner of six of our largest hotels) to Accor and Singapore based investor Ascendas.

This transaction is a transforming event for our company. It will create new opportunities for staff, our owners and our customers. There are also some critical elements to the transaction that I will explain below that should encourage staff to embrace the opportunity to be part of one the world’s largest hotel companies. I can imagine you have many questions and I will attempt to touch on what I think are some of the major items.

What does this mean for Mirvac Hotels associates?
Under the terms of the sale contract Accor is obliged to offer employment to all staff on their prevailing terms and conditions.

How will our business transition to Accor?
The transition of our business into Accor will be a gradual and considered process to ensure minimal disruption. This means key elements of our business such as CRS, web site, sales & marketing programs, national training, STARS Program will initially continue as per usual.

What is the timing for the completion of the transaction?
Completion is subject to a number of consents and regulatory approvals which means the sale will not be completed until the second quarter of 2012. Until completion, it will be business as usual. Post completion it is anticipated there will be interchange of staff between Accor and Mirvac Hotels & Resorts that hopefully will give everyone the opportunity to enhance their career path."